-The figure above shows Diane's demand curve for soft drinks. The price of a soft drink is $1.00. Diane's consumer surplus from all 15 soft drinks is
A) $15.00.
B) $11.25.
C) $8.00.
D) $22.50.
E) $1.50.

Question

-The figure above shows Diane's demand curve for soft drinks. The price of a soft drink is $1.00. Diane's consumer surplus from all 15 soft drinks is
A) $15.00. 
B) $11.25. 
C) $8.00. 
D) $22.50. 
E) $1.50.

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price line, up to the quantity purchased. It's calculated as the area of a triangle in this case, with a base of 15 (the quantity) and a height of $1.50 (the difference between the highest price willing to be paid, $2.50, and the market price, $1.00). The formula for the area of a triangle is 1/2 * base * height, so 1/2 * 15 * $1.50 = $11.25.

-The Figure Above Shows Diane's Demand Curve for Soft Drinks